Tennessee Property Management Insurance

Insurance for Tennessee Property Managers

As a property manager in Tennessee, you need to be prepared for a unique set of legal challenges. Tennessee Property Management Insurance from FirmSecured equips you to confidently protect your TN property management company.

Consider a scenario where a Nashville tenant encounters a significant water leak, leading to mold that they argue has adversely affected their health and belongings. They attribute the worsening situation to the property manager’s delayed response.

Proper Errors and Omissions (E&O) and General Liability (GL) insurance are designed to safeguard your business in such incidents. However, it’s common to find that many E&O and GL policies lack comprehensive coverage for bodily injury and property damage related to property management, leaving potential vulnerabilities.

Regardless of whether you manage properties in Nashville, Memphis, Gatlinburg, Chattanooga, or Knoxville, securing the right insurance coverage is key to protecting your Tennessee property management enterprise.

Gatlinburg TN Managed Properties
Roan Mountain TN Land

What Insurance do TN Property Management Companies Need?

Tennessee property management businesses need to secure three fundamental types of insurance to protect their operations:

Errors and Omissions (E&O): Indispensable for Tennessee property management firms, E&O insurance, also known as professional liability insurance, is critical. The Tennessee Real Estate Commission (TREC) requires that all real estate licensees in TN maintain real estate E&O coverage. 

Cyber Liability Insurance: As cyber threats increase, Cyber Liability insurance is crucial for property managers in Tennessee. It offers financial defense against the impact of cyber events, covering costs associated with notifying impacted parties and credit monitoring services following a data breach.

General Liability (GL): This insurance is vital for TN property management companies, offering protection against a broad spectrum of legal challenges related to their business operations. Tennessee property managers who own their office premises should also consider commercial property insurance, which can be combined with GL coverage in a commercial package or a business owner’s policy (BOP).

Nashville TN Commercial Real Estate

Property Management E&O Insurance

As mentioned above, the Tennessee Real Estate Commission (TREC) mandates Errors and Omissions (E&O) Insurance for all TN real estate licensees.

Imagine a scenario where a Sevierville tenant complains of ongoing maintenance issues in their rental unit. If your response is considered inadequate, causing damage to the tenant’s belongings, quality E&O insurance could cover resulting legal costs.

Alternatively, consider a case in Franklin where a property manager overlooks essential procedures during an eviction process. If such a mistake leads to legal action, professional liability coverage is specifically tailored to handle allegations of professional errors or omissions in property management.

Keep in mind that not all real estate or property management E&O policies in TN are the same. Many Tennessee professional liability policies have significant gaps for property managers.

General Liability for TN Property Managers

In Tennessee, securing General Liability (GL) insurance that thoroughly covers property managers without confining them to premises-only restrictions or leaving other substantial coverage gaps can be a complex task. 

FirmSecured has established a partnership with a leading regional insurance provider, recognized for addressing these GL and property coverage shortcomings for property management professionals. General liability is a basic insurance coverage, and covers against a number of general legal issues.

It’s important to note that claims involving bodily injury or property damage, typically covered by quality E&O policies generally require that general liability coverage be in place in order to activate the E&O benefits.

Gatlinburg Great Smoky Mountains TN
Chattanooga Lookout Mountain Property

Property Management Cyber Insurance

In Tennessee, property managers are facing growing concerns over cybersecurity threats.

Imagine a scenario where sensitive tenant data is leaked, possibly resulting in legal challenges for your property management firm.

Throughout TN, property managers encounter dangers from cyber threats such as phishing, ransomware attacks, data leaks, or altered financial records.

These events could result in legal fees, regulatory fines, and damage to your reputation, highlighting the critical need for cyber liability insurance.

Cyber liability insurance provides TN property managers with protection against the financial impacts of a cyber event.

Get Your Proposal from FirmSecured

At FirmSecured, we specialize in crafting insurance solutions tailored for Tennessee property management and TN real estate agencies.

Our Johnson City team conducts thorough risk assessments for property managers. If you already have insurance, we dedicate ourselves to identifying any gaps or weaknesses in your current coverage or potential offers.

Through collaborations with a wide range of insurance providers, we offer numerous insurance choices, each designed to meet the precise needs of your Tennessee property management business.

We strive to arm you with the vital knowledge needed to select insurance policies that best suit your company’s specific demands and budget.

Our commitment is to provide personalized advice and steadfast support to our clients, ensuring their insurance requirements are fully met.

FirmSecured is powered by Veritas Risk Management, an independent insurance agency based in Northeast Tennessee, and licensed in 47 states, including Tennessee, Virginia, North Carolina, Kentucky, and the surrounding states.